5 Last-Minute Ways To Clear Credit Card Debt, Using Money Tools
If you’re *this close* to paying off your credit card balance and want to walk into the new year debt-free, there are a handful of small, but helpful, steps you can take in these last couple weeks you have left.
Apart from winning the lottery or receiving a surprise inheritance, you may have to get creative to pay off your last bit of debt. Below, we’ve outlined unique tips you can use to become debt-free before 2026. Keep in mind that these tips are likely best for smaller remaining debt balances and while they may help you make progress on heftier balances, they may not completely clear a large balance in just a short amount of time.
Explore debt relief options
Redeem credit card points as a statement credit
If you have a good amount of credit card points and you’re prioritizing paying off your credit card debt, you can redeem your points as a statement credit to lower your balance. Statement credit redemptions are generally valued at 1 cent per point. Though your points can be worth more when redeeming for other things like travel, if being debt-free is your primary goal right now and a statement credit can help get you there, you’re simply using what you already have at your disposal.
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Rakuten
Information about Rakuten has been collected independently by CNBC Select and has not been reviewed or provided by the company prior to publication.
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Cost
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Cash back
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Coupon codes
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Mobile app
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Works with in-store purchases
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Welcome bonus
New users can earn a $10 bonus after spending $25 on purchases made in your first 90 days. You also may be able to earn an even larger bonus if you’re referred by a friend.
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How to redeem your savings
Rewards are issued quarterly.
Pros
- You can earn American Express Membership Rewards Points or Bilt Rewards instead of cash back
- New users can earn a welcome bonus or referral bonus
- Offers at over 3,500 online stores
- You can activate savings, then shop and save on in-store purchases
Cons
- Cash back is awarded quarterly
- Typically not valid with Amazon purchases
Granted, cash back amounts are often on the lower end (think 1% to 3%), so, unless you’re spending hundreds, you may not receive a mountain of money back. However, Rakuten offers higher-than-normal cash back (we’re talking 20% to 30%) on select brands and retailers for a limited time, so this is your chance to cash in the most.
Post on resale apps and websites
Now’s the time to clear any clutter and try to make some money off of it. Whether it’s kid toys, clothing, furniture or home goods, resale apps and websites like Mercari, Depop and Facebook Marketplace have made it easier to get rid of gently used items and pocket a little cash while you’re at it.
Selling unused items can be a simple way to make extra money to pay your credit card, but it isn’t always the most time-sensitive route. Some of your listings can sit untouched for weeks, and sometimes people make a counter offer that’s lower than what you originally wanted to earn for your item and you have to negotiate. Having said that, it’s worth setting up now so going into the new year you have products listed that people may be looking for.
Mercari
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Fees
Sellers pay a 10% fee for each item that’s sold. There’s also a payment processing fee of 2.9% plus $0.50. There’s also a $2 fee for each direct deposit transfer under the minimum of $10 or a deposit rejected by the financial institution. Each Instant Pay transfer is $3.
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Shipping costs
Either the buyer or seller can cover the cost of shipping; shipping labels are generated by Mercari and costs depend on the weight and dimensions of your package.
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Availability
Mercari has an app that’s available in both the App Store (for iOS) and on Google Play (for Android), and you can also list and shop via its website.
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How do you get paid?
After the transaction has been completed, the payment will show up on your Mercari balance. You can either have the money directly deposited into your bank account.
Pros
- You only have to pay fees when you sell an item (no listing fees)
- People who want to sell items locally can use Mercari Local
- You can post the listings and manage your shop all from your phone
Cons
- Mercari take a higher commission fee (10%) than some other resale platforms
- There’s a $2 if your direct deposit is less than $10
Depop
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Fees
Depop collects a 10% fee for each item sold on the platform. On top of that, for U.S. sellers, the standard transaction fee for Depop Payments is 3.3% + $0.45, and the standard Paypal fee is 3.49% + $0.49.
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Shipping costs
Either the buyer or seller can cover the cost of shipping for shipping labels generated by Depop — costs depend on the weight and dimensions of your package. U.S. sellers can also choose to arrange their own shipping
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Availability
The app is available in both the App Store (for iOS) and on Google Play (for Android); there’s also a web version, but the app is more functional.
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How do you get paid?
You’ll need a PayPal account in order to get paid. However, there are two options for sellers on Depop: Getting paid directly through your PayPal, which is linked to your Depop account, or through Depop Payments. If your shop uses Depop payments, you’ll be paid directly to your bank account.
Pros
- You only have to pay fees when you sell an item (no listing fees)
- You can post the listings and manage your shop all from your phone
Cons
- Depop takes a higher commission fee (10%) than some other resell platforms
- You can’t use it for in-person deliveries or orders
Monetize your skills for last-minute work
There’s not enough time left in the year to start a full-on side gig, but you can pick up random freelance work to do during evenings (or whenever you have time during the day) and use those earnings for paying down debt.
You can create your own pricing and use gig sites like Fiverr and Upwork to publicize your services. Upwork, for instance, will show you projects based on your skill, whether it’s writing or design. You can sign up for job notifications so tailored alerts are always coming to you and use the “available now” badge to show that you can start immediately.
Use your holiday bonus
Have you received a holiday bonus this month, or planning to? Make the most of this windfall of cash by putting it toward your costly credit card debt. Even if your bonus only makes a good dent in your credit card debt but doesn’t clear it completely, you’re lowering your balance and thus how much additional interest can accrue.
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